Manteca’s elected leaders want South San Joaquin Irrigation District to be the city’s retail power provider.
The City Council, convinced the South San Joaquin Irrigation District has the resources and knowledge to lower retail power rates 15 percent across the board and improve reliability, went on record unanimously Tuesday to urge the San Joaquin County Local Area Formation Commission to approve the SSJID application to allow them to enter the retail power business in Manteca, Ripon, and Escalon. Ultimately the SSJID would replace PG&E.
The decision before an audience packed with PG&E workers is a far cry from two years ago when Manteca’s council opted to stay neutral. Mayor Willie Weatherford explained the big difference was that SSJID has provided more data, has established a firm track record including reducing city power costs 15 percent to run the water treatment plant, and that PG&E power rates continue to climb.
Two years ago, Councilwoman Debby Moorhead – who was not an elected official at the time – was the executive director of Stop the Power Grab. It is the group created by PG&E to try and sway public opinion against SSJID entering the retail power business. On Tuesday, she was on board with the rest of her council colleagues in backing SSJID’s request before LAFCO.
PG&E government relations manager Emily Barnett characterized the SSJID proposal as “ill advised” saying it is essentially the same application the LAFCO board rejected prior as well as two court decisions. Actually, the LAFCO staff in 2007 recommended approval saying it met the needed criteria to proceed. PG&E successfully lobbied majority of the LAFCO members to vote against it by framing the argument against eminent domain which PG&E contends SSJID will ultimately have to use to get the territory from them. Eminent domain, as LAFCO staff noted in 2007, isn’t a concern that the LAFCO board is required to judge service applications on under state law.
It was a point re-emphasized in a follow-up question by Weatherford when it was noted that the California Public Utilities Commission did not take issue with the SSJID’s proposed move into retail.
Bob Brock, a Manteca resident and PG&E employee of 26 years who is supervisor of the PG&E’s Manteca electrical distribution, voiced concerns about his future employment and that of others should PG&E have to divest itself of the Manteca, Ripon, and Escalon retail electric territory.
He also zeroed in on language in the SSJID application that said it would initially hire 11 linemen to serve retail power system.
Brock noted he was part of crews that worked 27 hours straight after this past weekend’s lightning storm to get power up and running. SSJID General Manager Jeff Shields, later in response to council questions, said SSJID has plans to hire “as many linemen as it takes.” The application states they will start with 11 and operate with additional contract employees to get a year’s operations under their belt initially before hiring more permanent staff. The upfront employment number for full-time positions for SSJID is 68.
Councilman Vince Hernandez surveyed various Manteca residents and businesses whose power bills ran the gamut from $39 a month to $2.3 million a year. He said the group that had the concern were seniors on fixed income and low-income families. Hernandez was concerned that those people would lose their discounts that run as high as 20 percent.
Shields noted those discounts would remain in place and that SSJID will give them “15 percent discounts on top of the 20 percent discount” they are now receiving.
Shields emphasized everyone except one group of people would receive a 15 percent reduction in their power bill sunder the SSJID plan. That one group is PG&E employees who reside within the 72,000 acres of the SSJID. Currently, PG&E grants them 25 percent discounts.
“They (the PG&E workers) will get the same 15 percent discount as everyone else,” Shields said, adding SSJID employees will not get any break simply because they are SSJID employees.
•PG&E will continue to remain as the natural gas provider in Manteca regardless of what happens at LAFCO.
•The California Public utilities Commission has determined PG&E’s remaining customers will not be impacted by SSJID taking PG&E territory. There are 5.1 million PG&E customers system wide and just 38,000 within the boundaries of the SSJID.
•SSJID will pursue the production of even more zero-emissions power generation within the district by working with people for roof-top, farm and business solar installations. All of SSJID’s energy generation portfolio is green.
•In at least four instances PG&E came to agreement to sell parts of their system instead of being forcing use of eminent domain. Those instances are Trinity, Lassen, Turlock, and Redding.
• The 15 percent rate reduction would pump $11.6 million a year back into the economy, reduce a family’s yearly power bill that uses 1,000 kilowatt hour s month by $349, and slash the City of Manteca’s annual power use costs by $300,000.
•SSJID will provide local control and accountability.
“If you’re not reliable them accountability will fall on your doorstep like lightning,” Weatherford said at one point, noting there are reliability concerns now with PG&E service.
Barnett made a pitch to put the proposal to a vote of residents. PG&E is underwriting a statewide initiative that would require just that should any future segments of its territory want to form their own retail public power concern. The PG&E measure would require a two-thirds vote.
Councilman Steve DeBrum pointed out that not only are four of the five SSJID board members currently elected in at least part by Manteca residents but all five have a fiduciary responsibility to the entire district including Manteca. Voters do not elect PG&E directors.
Shields – and council members – emphasized that there is no issue with PG&E’s rank and file but with how the corporation is run.
Shields noted that the battle is “Beale Street (PG&E’s corporate headquarters in San Francisco) with (SSJID).
The City Council, convinced the South San Joaquin Irrigation District has the resources and knowledge to lower retail power rates 15 percent across the board and improve reliability, went on record unanimously Tuesday to urge the San Joaquin County Local Area Formation Commission to approve the SSJID application to allow them to enter the retail power business in Manteca, Ripon, and Escalon. Ultimately the SSJID would replace PG&E.
The decision before an audience packed with PG&E workers is a far cry from two years ago when Manteca’s council opted to stay neutral. Mayor Willie Weatherford explained the big difference was that SSJID has provided more data, has established a firm track record including reducing city power costs 15 percent to run the water treatment plant, and that PG&E power rates continue to climb.
Two years ago, Councilwoman Debby Moorhead – who was not an elected official at the time – was the executive director of Stop the Power Grab. It is the group created by PG&E to try and sway public opinion against SSJID entering the retail power business. On Tuesday, she was on board with the rest of her council colleagues in backing SSJID’s request before LAFCO.
PG&E government relations manager Emily Barnett characterized the SSJID proposal as “ill advised” saying it is essentially the same application the LAFCO board rejected prior as well as two court decisions. Actually, the LAFCO staff in 2007 recommended approval saying it met the needed criteria to proceed. PG&E successfully lobbied majority of the LAFCO members to vote against it by framing the argument against eminent domain which PG&E contends SSJID will ultimately have to use to get the territory from them. Eminent domain, as LAFCO staff noted in 2007, isn’t a concern that the LAFCO board is required to judge service applications on under state law.
Courts didn’t rule on validity of previous SSJID application
The subsequent court decisions Barnett referred to were filings by the SSJID to argue LAFCO didn’t have jurisdiction because SSJID was already in the wholesale power business so retail power wasn’t a new service for them. The courts disagreed twice noting that the fact SSJID went before LAFCO in the first place re-enforces that it was LAFCO’s call to make. The court decisions had absolutely nothing to do with the validity of the SSJID’s application or whether it was feasible.It was a point re-emphasized in a follow-up question by Weatherford when it was noted that the California Public Utilities Commission did not take issue with the SSJID’s proposed move into retail.
Bob Brock, a Manteca resident and PG&E employee of 26 years who is supervisor of the PG&E’s Manteca electrical distribution, voiced concerns about his future employment and that of others should PG&E have to divest itself of the Manteca, Ripon, and Escalon retail electric territory.
He also zeroed in on language in the SSJID application that said it would initially hire 11 linemen to serve retail power system.
Brock noted he was part of crews that worked 27 hours straight after this past weekend’s lightning storm to get power up and running. SSJID General Manager Jeff Shields, later in response to council questions, said SSJID has plans to hire “as many linemen as it takes.” The application states they will start with 11 and operate with additional contract employees to get a year’s operations under their belt initially before hiring more permanent staff. The upfront employment number for full-time positions for SSJID is 68.
Councilman Vince Hernandez surveyed various Manteca residents and businesses whose power bills ran the gamut from $39 a month to $2.3 million a year. He said the group that had the concern were seniors on fixed income and low-income families. Hernandez was concerned that those people would lose their discounts that run as high as 20 percent.
Shields noted those discounts would remain in place and that SSJID will give them “15 percent discounts on top of the 20 percent discount” they are now receiving.
Shields emphasized everyone except one group of people would receive a 15 percent reduction in their power bill sunder the SSJID plan. That one group is PG&E employees who reside within the 72,000 acres of the SSJID. Currently, PG&E grants them 25 percent discounts.
“They (the PG&E workers) will get the same 15 percent discount as everyone else,” Shields said, adding SSJID employees will not get any break simply because they are SSJID employees.
PG&E regardless would continue to provide natural gas
Other points brought up include:•PG&E will continue to remain as the natural gas provider in Manteca regardless of what happens at LAFCO.
•The California Public utilities Commission has determined PG&E’s remaining customers will not be impacted by SSJID taking PG&E territory. There are 5.1 million PG&E customers system wide and just 38,000 within the boundaries of the SSJID.
•SSJID will pursue the production of even more zero-emissions power generation within the district by working with people for roof-top, farm and business solar installations. All of SSJID’s energy generation portfolio is green.
•In at least four instances PG&E came to agreement to sell parts of their system instead of being forcing use of eminent domain. Those instances are Trinity, Lassen, Turlock, and Redding.
• The 15 percent rate reduction would pump $11.6 million a year back into the economy, reduce a family’s yearly power bill that uses 1,000 kilowatt hour s month by $349, and slash the City of Manteca’s annual power use costs by $300,000.
•SSJID will provide local control and accountability.
“If you’re not reliable them accountability will fall on your doorstep like lightning,” Weatherford said at one point, noting there are reliability concerns now with PG&E service.
Barnett made a pitch to put the proposal to a vote of residents. PG&E is underwriting a statewide initiative that would require just that should any future segments of its territory want to form their own retail public power concern. The PG&E measure would require a two-thirds vote.
Councilman Steve DeBrum pointed out that not only are four of the five SSJID board members currently elected in at least part by Manteca residents but all five have a fiduciary responsibility to the entire district including Manteca. Voters do not elect PG&E directors.
Shields – and council members – emphasized that there is no issue with PG&E’s rank and file but with how the corporation is run.
Shields noted that the battle is “Beale Street (PG&E’s corporate headquarters in San Francisco) with (SSJID).
